BSVN - Bank7 Corp. Announces Q3 2021 Earnings
PR Newswire
OKLAHOMA CITY , Oct. 21, 2021 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City -based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter ended September 30, 2021. "Our company continues to perform at a very high level, we are pleased to report another record quarter of net income for BSVN. While we are proud of our earnings, capital, and liquidity strength, we also pause to acknowledge the 3-year anniversary of our IPO, and how we had confidence in our team to perform at a high level and we've exceeded those expectations." said Thomas L. Travis , President and CEO of the Company.
Three months ended September 30, 2021 compared to three months ended September 30, 2020 :
- Pre-tax, pre-provision earnings of $9.1 million compared to $7.4 million , an increase of 23.5%
- Net income of $6.3 million compared to $4.4 million , an increase of 41.1%
- Total assets of $1.1 billion compared to $973.4 million , an increase of 17.8%
- Total deposits of $1.0 billion compared to $863.7 million , an increase of 17.9%
- Tangible book value per share of $13.34 compared to $11.21 , an increase of 19.0%
- Average cost of funds of 0.33% compared to 0.57%, a decrease of 42.1%
- Earnings per share of $0.69 compared to $0.48 , an increase of 43.8%
- ROAA of 2.36% compared to 1.83%, an increase of 28.9%
- ROATCE of 21.12% compared to 17.44%, an increase of 21.1%
Both the Bank's and the Company's capital levels continue to be significantly above the minimum levels required to be designated as "well-capitalized" for regulatory purposes. On September 30, 2021 , the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.51%, 13.76%, and 14.82%, respectively. On September 30, 2021 , on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.50%, 13.74%, and 14.80%, respectively. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
Pre-tax, pre-provision earnings is defined as income before taxes and provision for loan losses. We believe the most directly comparable GAAP financial measure is income before taxes. Disclosure of this measure enables you to compare our operations to those of other banking companies before consideration of taxes and provision expense. We calculate our tax-adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined effective tax rate for federal and state income taxes of 24.8% and 27.2% in the third quarter of 2021 and 2020, respectively. We acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those we use for non-GAAP financial measures we disclose, but may calculate them differently. You should understand how we and other companies each calculate their non-GAAP financial measures when making comparisons. The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:
Three months ended Nine months ended (Dollars in thousands, except per share data) 2021 2020 2021 2020 Loan interest income (excluding loan fees) Total loan interest income, including loan fee income $ 13,927 $ 12,777 $ 41,377 $ 39,268 Loan fee income (1,636) (1,078) (6,154) (3,969) Loan interest income excluding loan fee income $ 12,291 $ 11,699 $ 35,223 $ 35,299 Average total loans $ 924,391 $ 847,076 $ 887,353 $ 807,134 Yield on loans (including loan fee income) 5.98 6.00 6.23 6.50 Yield on loans (excluding loan fee income) 5.28 5.49 5.31 5.84 Pre-tax, pre-provision net earnings Net income before income taxes $ 8,327 $ 6,101 $ 23,226 $ 19,567 Plus: Provision for loan losses 750 1,250 3,325 3,300 Pre-tax, pre-provision net earnings $ 9,077 $ 7,351 $ 26,551 $ 22,867 Adjusted provision for income tax Net income before income taxes $ 8,327 $ 6,101 $ 23,226 $ 19,567 Total effective adjusted tax rate 24.8% 27.2% 24.8% 25.8% Adjusted provision for income taxes $ 2,063 $ 1,661 $ 5,753 $ 5,040 Tax-adjusted net income Net income before income taxes $ 8,327 $ 6,101 $ 23,226 $ 19,567 Adjusted provision for income taxes 2,063 1,661 5,753 5,040 Tax-adjusted net income $ 6,264 $ 4,440 $ 17,473 $ 14,527 Tax-adjusted ratios and per share data Tax-adjusted net income (numerator) $ 6,264 $ 4,440 $ 17,473 $ 14,527 Average assets (denominator) $ 1,051,873 $ 967,044 $ 1,019,764 $ 937,849 Tax-adjusted return on average assets 2.36% 1.83% 2.29% 2.07% Average shareholders' equity (denominator) $ 119,145 $ 102,929 $ 113,817 $ 101,377 Tax-adjusted return on average shareholders' equity 20.86% 17.16% 20.53% 19.14% Average tangible common equity (denominator) $ 117,679 $ 101,269 $ 112,305 $ 99,667 Tax-adjusted return on average tangible common equity 21.12% 17.44% 20.80% 19.47% Weighted average common shares outstanding basic (denominator) 9,052,718 9,228,128 9,051,112 9,483,540 Tax-adjusted net income per common share--basic $ 0.69 $ 0.48 $ 1.93 $ 1.53 Weighted average common shares outstanding diluted (denominator) 9,105,255 9,228,128 9,078,671 9,483,540 Tax-adjusted net income per common share--diluted $ 0.69 $ 0.48 $ 1.92 $ 1.53 Tangible assets Total assets $ 1,146,230 $ 973,354 Less: Goodwill and intangibles (1,446) (1,634) Tangible assets $ 1,144,784 $ 971,720 Tangible shareholders' equity Total shareholders' equity $ 122,409 $ 105,230 Less: Goodwill and intangibles (1,446) (1,634) Tangible shareholders' equity $ 120,963 $ 103,596 Tangible shareholders' equity Tangible shareholders' equity (numerator) $ 120,963 $ 103,596 Tangible assets (denominator) 1,144,784 971,720 Tangible common equity to tangible assets 10.57% 10.66% End of period common shares outstanding 9,070,038 9,241,689 Book value per share $ 13.50 $ 11.39 Tangible book value per share $ 13.34 $ 11.21 Total shareholders' equity to total assets 10.68% 10.81%
September 30,
September 30,
|
|
Net Interest Margin Excluding Loan Fee Income |
|
|
For the Three Months Ended September 30, |
|
|
2021 |
|
2020 |
|
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|
|
(Dollars in thousands) |
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term investments (1) |
|
$ 120,078 |
|
$ 79 |
|
0.26% |
|
$ 111,019 |
|
$ 147 |
|
0.53% |
Investment securities (2) |
|
1,187 |
|
2 |
|
0.67 |
|
1,138 |
|
2 |
|
0.70 |
Loans held for sale |
|
610 |
|
- |
|
- |
|
425 |
|
- |
|
- |
Total loans (3) |
|
924,391 |
|
12,291 |
|
5.28 |
|
847,076 |
|
11,699 |
|
5.49 |
Total interest-earning assets |
|
1,046,266 |
|
12,372 |
|
4.69 |
|
959,658 |
|
11,848 |
|
4.91 |
Noninterest-earning assets |
|
5,607 |
|
|
|
|
|
7,386 |
|
|
|
|
Total assets |
|
$ 1,051,873 |
|
|
|
|
|
$ 967,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding sources: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Transaction accounts |
|
$ 401,843 |
|
332 |
|
0.33% |
|
$ 381,572 |
|
545 |
|
0.57% |
Time deposits |
|
220,189 |
|
397 |
|
0.72 |
|
200,961 |
|
780 |
|
1.54 |
Total interest-bearing deposits |
|
622,032 |
|
729 |
|
0.46 |
|
582,533 |
|
1,325 |
|
0.90 |
Total interest-bearing liabilities |
|
622,032 |
|
729 |
|
0.46 |
|
582,533 |
|
1,325 |
|
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
304,063 |
|
|
|
|
|
276,219 |
|
|
|
|
Other noninterest-bearing liabilities |
|
6,633 |
|
|
|
|
|
5,363 |
|
|
|
|
Total noninterest-bearing liabilities |
|
310,696 |
|
|
|
|
|
281,582 |
|
|
|
|
Shareholders' equity |
|
119,145 |
|
|
|
|
|
102,929 |
|
|
|
|
Total liabilities and shareholders' equity |
|
$ 1,051,873 |
|
|
|
|
|
$ 967,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income excluding loan fee income |
|
|
|
$ 11,643 |
|
|
|
|
|
$ 10,523 |
|
|
Net interest spread excluding loan fee |
|
|
|
|
|
4.23% |
|
|
|
|
|
4.01% |
Net interest margin excluding loan fee income |
|
|
|
|
|
4.41% |
|
|
|
|
|
4.36% |
Net Interest Margin Including Loan Fee Income For the Three Months Ended September 30, 2021 2020 Average Interest Average Average Interest Average (Dollars in thousands) Interest-Earning Assets: Short-term investments (1) $ 120,078 $ 79 0.26% $ 111,019 $ 147 0.53% Investment securities (2) 1,187 2 0.67 1,138 2 0.70 Loans held for sale 610 - - 425 - - Total loans (3) 924,391 13,927 5.98 847,076 12,777 6.00 Total interest-earning assets 1,046,266 14,008 5.31 959,658 12,926 5.36 Noninterest-earning assets 5,607 7,386 Total assets $ 1,051,873 $ 967,044 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 401,843 332 0.33% $ 381,572 545 0.57% Time deposits 220,189 397 0.72 200,961 780 1.54 Total interest-bearing deposits 622,032 729 0.46 582,533 1,325 0.90 Total interest-bearing liabilities 622,032 729 0.46 582,533 1,325 0.90 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 304,063 276,219 Other noninterest-bearing liabilities 6,633 5,363 Total noninterest-bearing liabilities 310,696 281,582 Shareholders' equity 119,145 102,929 Total liabilities and shareholders' equity $ 1,051,873 $ 967,044 Net interest income including loan fee income $ 13,279 $ 11,601 Net interest spread including loan fee 4.85% 4.45% Net interest margin including loan fee income 5.04% 4.81%
Balance
Income/
Expense
Yield/
Rate
Balance
Income/
Expense
Yield/
Rate
income (4)
|
|
(1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets. |
|
|
(2) |
Includes income and average balances for FHLB and FRB stock. |
|
|
(3) |
Non-accrual loans are included in loans. |
|
|
(4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities. |
Net Interest Margin Excluding Loan Fee Income For the Nine Months Ended September 30, 2021 2020 Average Interest Average Average Interest Average (Dollars in thousands) Interest-Earning Assets: Short-term investments (1) $ 124,801 $ 236 0.25% $ 120,909 $ 701 0.77% Investment securities (2) 1,182 19 2.15 1,109 21 2.53 Loans held for sale 501 - - 258 - - Total loans (3) 887,353 35,223 5.31 807,134 35,299 5.84 Total interest-earning assets 1,013,837 35,478 4.68 929,410 36,021 5.18 Noninterest-earning assets 5,927 8,439 Total assets $ 1,019,764 $ 937,849 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 410,299 1,024 0.33% $ 366,162 2,259 0.82% Time deposits 212,706 1,352 0.85 208,650 2,769 1.77 Total interest-bearing deposits 623,005 2,376 0.51 574,812 5,028 1.17 Total interest-bearing liabilities 623,005 2,376 0.51 574,812 5,028 1.17 Noninterest-bearing liabilities: Noninterest-bearing deposits 277,308 256,429 Other noninterest-bearing liabilities 5,634 5,231 Total noninterest-bearing liabilities 282,942 261,660 Shareholders' equity 113,817 101,377 Total liabilities and shareholders' equity $ 1,019,764 $ 937,849 Net interest income excluding loan fee income $ 33,102 $ 30,993 Net interest spread excluding loan fee 4.17% 4.01% Net interest margin excluding loan fee income 4.37% 4.45%
Balance
Income/
Expense
Yield/
Rate
Balance
Income/
Expense
Yield/
Rate
income (4)
Net Interest Margin With Loan Fee Income For the Nine Months Ended September 30, 2021 2020 Average Interest Average Average Interest Average (Dollars in thousands) Interest-Earning Assets: Short-term investments (1) $ 124,801 $ 236 0.25% $ 120,909 $ 701 0.77% Investment securities (2) 1,182 19 2.15 1,109 21 2.53 Loans held for sale 501 - - 258 - - Total loans (3) 887,353 41,377 6.23 807,134 39,268 6.50 Total interest-earning assets 1,013,837 41,632 5.49 929,410 39,990 5.75 Noninterest-earning assets 5,927 8,439 Total assets $ 1,019,764 $ 937,849 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 410,299 1,024 0.33% $ 366,162 2,259 0.82% Time deposits 212,706 1,352 0.85 208,650 2,769 1.77 Total interest-bearing deposits 623,005 2,376 0.51 574,812 5,028 1.17 Total interest-bearing liabilities 623,005 2,376 0.51 574,812 5,028 1.17 Noninterest-bearing liabilities: Noninterest-bearing deposits 277,308 256,429 Other noninterest-bearing liabilities 5,634 5,231 Total noninterest-bearing liabilities 282,942 261,660 Shareholders' equity 113,817 101,377 Total liabilities and shareholders' equity $ 1,019,764 $ 937,849 Net interest income including loan fee income $ 39,256 $ 34,962 Net interest spread including loan fee 4.98% 4.58% Net interest margin including loan fee income 5.18% 5.02%
Balance
Income/
Expense
Yield/
Rate
Balance
Income/
Expense
Yield/
Rate
income (4)
|
|
(1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets. |
|
|
(2) |
Includes income and average balances for FHLB and FRB stock. |
|
|
(3) |
Non-accrual loans are included in loans. |
|
|
(4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities. |
Bank7 Corp. Consolidated Balance Sheets Dollars in thousands Unaudited as of Assets September 30, December 31, 2021 2020 Cash and due from banks $ 205,762 $ 153,901 Interest-bearing time deposits in other banks 5,229 16,412 Loans, net 915,393 826,974 Loans held for sale 1,002 324 Premises and equipment, net 8,775 9,151 Nonmarketable equity securities 1,193 1,172 Goodwill and intangibles 1,446 1,583 Interest receivable and other assets 7,430 7,152 Total assets $ 1,146,230 $ 1,016,669 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 335,316 $ 246,569 Interest-bearing 683,058 658,945 Total deposits 1,018,374 905,514 Interest payable and other liabilities 5,447 3,827 Total liabilities 1,023,821 909,350 Common stock 91 90 Additional paid-in capital 93,766 93,162 Retained earnings 28,552 14,067 Total shareholders' equity 122,409 107,319 Total liabilities and shareholders' equity $ 1,146,230 $ 1,016,669
Bank7 Corp. Consolidated Statements of Income Unaudited as of Three Months Ended Nine Months Ended September 30, September 30, Dollars in thousands, except per share data 2021 2020 2021 2020 Interest Income Loans, including fees $ 13,927 $ 12,777 $ 41,377 $ 39,268 Interest-bearing time deposits in other banks 35 123 141 419 Interest-bearing deposits in other banks 46 26 114 303 Total interest income 14,008 12,926 41,632 39,990 Interest Expense Deposits 729 1,325 2,376 5,028 Total interest expense 729 1,325 2,376 5,028 Net Interest Income 13,279 11,601 39,256 34,962 Provision for Loan Losses 750 1,250 3,325 3,300 Net Interest Income After Provision for Loan Losses 12,529 10,351 35,931 31,662 Noninterest Income Secondary market income 161 57 253 134 Service charges on deposit accounts 141 104 380 318 Other 275 173 860 513 Total noninterest income 577 334 1,493 965 Noninterest Expense Salaries and employee benefits 2,946 2,505 8,685 7,576 Furniture and equipment 218 224 651 658 Occupancy 461 543 1,391 1,417 Data and item processing 292 276 857 821 Accounting, marketing and legal fees 150 135 447 338 Regulatory assessments 162 164 464 281 Advertising and public relations 76 62 181 360 Travel, lodging and entertainment 102 50 309 146 Other 372 625 1,213 1,463 Total noninterest expense 4,779 4,584 14,198 13,060 Income Before Taxes 8,327 6,101 23,226 19,567 Income tax expense 2,063 1,661 5,753 5,040 Net Income $ 6,264 $ 4,440 $ 17,473 $ 14,527 Earnings per common share - basic $ 0.69 $ 0.48 $ 1.93 $ 1.53 Diluted earnings per common share 0.69 0.48 1.92 1.53 Weighted average common shares outstanding - basic 9,052,718 9,228,128 9,051,112 9,483,540 Weighted average common shares outstanding - diluted 9,105,255 9,228,128 9,078,671 9,483,540
About Bank7 Corp.
We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma . Through our wholly-owned subsidiary, Bank7, we operate nine locations in Oklahoma , the Dallas/Fort Worth, Texas metropolitan area and Kansas . We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We intend to grow organically by selectively opening additional branches in our target markets as well as pursue strategic acquisitions.
Conference Call
Bank7 Corp. has scheduled a conference call to discuss its first quarter results, which will be broadcast live over the Internet, on Thursday, October 21, 2021 at 4:30 p.m. Eastern Time . To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://www.webcaster4.com/Webcast/Page/2179/43192 For those not able to participate in the live call, an archive of the webcast will be available at https://www.webcaster4.com/Webcast/Page/2179/43192 shortly after the call for 1 year.
Cautionary Statements Regarding Forward-Looking Information
This communication contains a number of forward-looking statements. These forward-looking statements reflect Bank7 Corp.'s current views with respect to, among other things, future events and Bank7 Corp.'s financial performance. Any statements about Bank7 Corp.'s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing,"
"expects," "intends" and similar words or phrases. Any or all of the forward-looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this presentation should not be regarded as a representation by Bank7 Corp. or any other person that the future plans, estimates or expectations contemplated by Bank7 Corp. will be achieved.
These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the impact of COVID-19 on the United States economy and our operations, the direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Bank7 Corp. has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Bank7 Corp. believes may affect its financial condition, results of operations, business strategy and financial needs. Bank7 Corp.'s actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more events related to these or other risks or uncertainties materialize, or if Bank7 Corp.'s underlying assumptions prove to be incorrect, actual results may differ materially from what Bank7 Corp. anticipates. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and Bank7 Corp. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as may be required by law. All forward-looking statements herein are qualified by these cautionary statements.
About Non-GAAP Financial Measures
This communication includes certain non-GAAP financial measures, including tax-adjusted net income, tax-adjusted earnings per share, tax-adjusted return on average assets and tax-adjusted return on average shareholders' equity. These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Bank7 Corp.'s non-GAAP financial measures as tools for comparison. See the table above in this communication for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this communication to their most directly comparable GAAP financial measures.
Contact:
Thomas Travis
President & CEO
(405) 810-8600
SOURCE Bank7 Corp.
News, Short Squeeze, Breakout and More Instantly...
Market Wire News is a media platform, the information on this page was provided by Canada Newswire via Quote Media. Read our full disclaimer.